Under the
Capital Markets and Services Act 2007 (CMSA), anyone wishes to carry out capital market activities (unless a registered person) is required to be appropriately licensed. The Securities Commission Malaysia (SC) is the sole licensing authority that approves licences for capital market intermediaries to be engaged in the regulated activities.
Under the CMSA, capital market intermediaries (CMI) that are fit and proper is issued with one licence that will enable them to carry on one or more regulated activities.
The SC is entrusted with the responsibility of ensuring an efficient and transparent licensing process and that the licensed intermediaries and its representatives are competent and proficient in providing their services to the investors. Certified as an ISO 9001:2015 department, the SC's Authorisation & Licensing Department undertakes the assessment of licence applications under its purview within the time frame stipulated in accordance with its ISO performance standards.
There are two main types of licensing applications, namely-
- New Capital Markets Services Licence (CMSL) – granted to a principal
- New Capital Markets Services Representative’s Licence (CMSRL) – granted to a representative to enable him to carry on any one or more regulated activities on behalf of his principal
Who are licensed by the SC
The CMSL and CMSRL are issued for the following regulated activities:
- Dealing in securities1
- Dealing in derivatives
- Clearing for securities/ derivatives2
- Fund management
- Dealing in private retirement schemes3
- Advising on corporate finance
- Investment advice
- Financial planning
Licensing Process
The licensing process for new CMSL and CMSRL applications is shown
here.
Licensing Application Kits containing Licensing Handbook, Frequently Asked Questions on Licensing and relevant forms are available on the SC’s website for your reference.
Submission to the SC
CMSL holders and New CMIs are required to submit the application forms and supporting document as stipulated in the
Licensing Handbook via the SC’s electronic licence application submission platform.
Pre-requisite for New CMIs
New CMIs are required to engage the SC for consultation prior to application submission and meet the requirement stated in the Client Charter below.
New eligible CMIs
4 that are subject to Focus Scope Assessment (FSA) Framework, are required to submit a third-party independent validation report conducted by the auditor registered with Audit Oversight Board (AOB) at the point of application submission.
Client Charter
For applications to be assessed in accordance with the SC’s Client Charter as per below table, the submission made must be complete, valid, accurate with full disclosure and meet the relevant licensing requirements stipulated in the
Licensing Handbook (Complete Submission) at the point of submission. The commencement of the SC’s assessment process is based on the conditions stated in the Complete Submission.
